Dhaka, Jan. 1 -- Many listed companies have been traded at abnormally high P/E (price to earnings) ratio in the outgoing year when the market has remained persistently gloomy and their peers with good fundamentals have languished at floor prices in absence of buyers.

For example, Samata Leather's P/E ratio stands at 842.5, calculated on the basis of the company's latest earnings per share, according to the DSE website.

It incurred a loss of Tk 0.06 per share for the fiscal year ended in June. The company's auditor even pointed out inconsistencies in its financial reporting.

Not only is the P/E ratio not supported by the business growth but also it far outstrips the weighted average ratio of the tannery industry -- 36.99 -- that Samata ...